Question
You just paid $77,000 for a perpetual bond. The bond has a face value of $150,000. The coupon rate is 6.4%. Coupons are paid annually.
You just paid $77,000 for a perpetual bond. The bond has a face value of $150,000. The coupon rate is 6.4%. Coupons are paid annually. What is the effective annual rate of return that you will earn?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
